Webex Procedural Conference - W-01445A-24-0117 & W-01445A-26-0044 - Arizona Water Company - Jun 19, 2026

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Arizona Corporation Commission 22 min 8 agenda items transcribed 3 days ago official recording ↗

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Transcript generated automatically by AI and may contain errors.

What is the purpose of the joint procedural conference and which dockets are being addressed?

Julia Motter 0:00

It's nine o'clock so we'll go ahead and get started. Let's go on the record. Good morning everyone. This is the time set for a joint procedural conference. In two dockets, docket number W zero one four four five A. Dash two four dash zero one one seven the rate case for Arizona Water Companies Northern Group. And docket number W01445A twenty-six dash zero zero four four, the rate case for Arizona Waters Western and Eastern groups. My name is Julia Motter. I'm the administrative law judge assigned to preside over the docket ending 26-0044. And I have consulted with ALJ Nichols, who's assigned to the docket ending twenty-four-zero one one seven. To begin with, we'll take appearances for the record. Starting with Arizona water.

Megan Grable 0:59

Thank you, Your Honor, Megan Grable for Arizona Water Company. With me on WebEx is Mr. Nick Liu, the Vice President of Regulatory and Rates, and Mr. Rob Speer, the Vice President and General Counsel. Right, and

Julia Motter 1:13

for Ruco?

Sarah Barrios Kool 1:16

Good morning, Your Honor. Sarah Barrios Kool on behalf of the Residential Utility Consumer Office. And also on the line is our Chief Counsel, Dan Pazepsky.

Julia Motter 1:25

All right, good morning. Thank you. And for stop.

Mike Daly 1:32

Uh good morning, Your Honor. This is Mike Daly with the Office of General Counsel, the Arizona Corporation Commission. With me today is Ben Caveros, Senior Uh Associate General Counsel, Helen Bitsomaya of the Utilities Division, the co-director of the Utilities Division, uh Britton Baxter and um Also with the utilities division Teresa Hunsacker.

Julia Motter 2:03

All right, thank you. So we're holding this procedural conference today to talk about two issues, um, the overlapping formula rate. Applications in the two different dockets and the potential for consolidation and then a schedule for those matters. Um, my understanding is that for the Northern Group Docket, there's a phase two that was ordered to address formula rates only. And that Arizona Water has proposed the same or a similar formula rate mechanism for the western and eastern groups and wants them to be treated the same Um and potentially implemented at the same time. Is that correct, Miss Grable?

Megan Grable 2:49

Yes, that is correct, Your Honor.

How do the parties propose consolidating the Northern, Western, and Eastern rate‑case dockets?

Julia Motter 2:51

Okay. So in the interest of efficiency and consistency, it seems best that the dockets be consolidated and the formulate rate issue be um addressed for all groups at one time at the hearing for the rate case for the Western and Eastern groups. rather than duplicate testimony at a separate hearing. And that way if the commission does decide to adopt formula rates. um the protocols and the implementation implementation can be aligned. Also, uh, so far in the formulary filings that the Commission has seen thus far in other cases. Um, those are proposed to be filed going forward in the underlying rate case docket. So consolidation would also have Um, the benefit of aligning future filings for all groups in one docket, which seems like it would be the best for all parties.

Julia Motter 3:50

involved uh the company and the hearing division. So We will go around the room and everyone can tell me if they agree with that or if there's a reason why. Um the northern group's formula rate proposal should be addressed separately. And I'll let you start, Miss Grable.

Megan Grable 4:10

Thank you, Your Honor. Arizona Water Company fully supports your proposal and the consolidation. Okay, thank you, Miss

Julia Motter 4:17

Greyball. And Miss Barrio's cool.

Sarah Barrios Kool 4:21

Thank you, Your Honor. Um, we agree that everything here points to consolidation, um, but we do want to let you know that there is something on our radar, and that's that there is an issue with respect to the cost of capital. There was an ROE set for the Northern Group in uh connection with a dis the decision in twenty twenty-five. And um so we just wanna we're mindful of that. We do believe that the order that that decision allows uh discussion about whether or not there should be a risk reducing effect to the ROE or the fair vo return on the fair value increment as a result of the formula rate. Um, but we do know that that's um It's it's an interesting issue that we I haven't seen in in prior cases where one of the groups has an ROE that's been set in a phase one.